Wakayama Council Members Raise Questions Over Prefecture’s IR Partner Clairvest

Wakayama prefecture held a meeting of the IR Countermeasures Special Committee of the prefectural assembly at the prefectural office on 8 October as part of their project for an IR bid.

The prefecture announced it would solicit comments from the public from 25 November and hold resident briefings at 14 locations across the prefecture.

Raising various concerns about the proposed development of an integrated resort at Wakayama Marina City, some attendees noted there were no materials to support the financing of Wakayama’s preferred IR partner, Clairvest Neem Ventures Co., Ltd, provided in commentary from the IR Business Selection Committee.

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They also noted that two of the company’s representative directors had resigned on 8 June and 25 August respectively, and a new one appointed on 25 August – the same day the prefecture and consortium signed a basic agreement. Questions were raised about the total number of shares and the composition of the company’s shareholders, whose total number of shares and capital are seen to be increasing, and the prefecture was asked for an explanation and transparency.

The prefecture revealed that it has asked the Clairvest to enhance its management systems in anticipation of application to the central government and so the officers had changed on the date of the conclusion of the basic agreement. The prefecture also responded that the structure of shareholders had been confirmed but some council members expressed their concern and criticism of the situation.

When asked about the investment of US casino giant Caesars Entertainment, which was recently revealed as operator of Clairvest’s IR, the prefecture said this was undecided. However, Caesars CEO Tom Reeg has previously stated that Caesars’ involvement would require no capital commitment.